Vail Resorts Inc. (MTN) Wednesday reported an increase in profit for the second quarter, as revenues grew reflecting improvement in traffic to ski resorts after a mild start to the season. Earnings for the quarter came in short of Street estimates, but revenues trumped expectations. The company also reaffirmed its full-year outlook.
Strong visitation and increases in guest spending supported revenue growth in all major lines of businesses, the Broomfield, Colorado-based company said in a statement. Total skier visitation increased 2.9 percent for the second quarter from the same period last year.
Ski resorts operator Vail Resorts, like other players in the industry, was impacted by lack of snow due to warmer winter in mid-December. However, visitors and consumer spending increased after the weather conditions returned to normal patterns during the Christmas and New Year holidays.
Lift revenue revenues increased 17.9 percent driven by an increase in visitation and effective ticket price. Ski school revenues rose 12 percent, while dining was up 20.6 percent and retail/rental up 13.4 percent.
Vail Resorts total revenues grew to $422.5 million from $373.3 million last year. Analysts polled by Thomson Reuters expected revenues of $414.13 million for the second quarter.
The company's second quarter profit improved to $60.5 million or $1.65 per share from $46.4 million or $1.27 per share last year. Analysts expected earnings of $1.70 per share for the quarter. Analysts' estimates typically exclude one-time items.
The company also boosted its quarterly dividend by 10 percent to $0.2075 per share from $0.1875 per share. The dividend is payable on April 9, 2013.
Looking forward, the company reiterated its fiscal-year 2013 net income guidance of $39 million to $49 million.
MTN closed Wednesday's trading at $56.70, down $0.21 or 0.37%, on the NYSE. In after hours, the stock gained $1.30 or 2.29%.
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